If planned aggregate expenditures are $225 billion, consumption is $110 billion, investment is $70 billion, government spending is $60 billion, there is a

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Quizplus · Accepted Answer

Planned aggregate expenditures equal the sum of consumption, investment, and government spending. Here, $225 billion = $110 billion (consumption) + $70 billion (investment) + $60 billion (government spending). This means there are no net exports included in the aggregate expenditures, indicating a trade deficit of $15 billion ($225 billion - $240 billion in total spending).

If Planned Aggregate Expenditures Are $225 Billion, Consumption Is $110